Answered: Draw an IS-LM model in general…

Draw an IS-LM model in general equilibrium. Show the effect of anincrease in marginal product of labor (positive productivity shock.) Showboth short run and long run equilibrium and effects..

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Draw an IS-LM model in general equilibrium. Show the effect of an
increase in marginal product of labor (positive productivity shock.) Show
both short run and long run equilibrium and effects..

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